Diego Graffi, Auto Information, Automobilnews
Glad with the corporate’s efficiency in FY’19 Piaggio Automobiles, a 100 per cent subsidiary of the Italian Piaggio Group, is planning to enter into an untapped mid physique measurement section in three-wheeler area to realize extra buyer base. The corporate goes to make one in all its largest investments of Rs 200 crore within the subsequent three years for product growth and diversification into BS VI and electrical mobility area, says Diego Graffi, Managing Director & CEO, Piaggio India. He additionally shares his firm’s product and networking plans for the close to future in an interview with ETAuto. Edited excerpts..
Q. Final fiscal 12 months was robust for automakers when it comes to auto gross sales. Contemplating the continued sluggishness available in the market, how would you rank the corporate’s efficiency in FY’19?
Final fiscal 12 months was fairly constructive for Piaggio when it comes to each three-wheelers and two-wheelers section. Within the three-wheeler trade, we have now been capable of regain and preserve main place in cargo and diesel segments the place our market share has historically various between 46 per cent and 48 per cent.
Within the scooter section we grew by greater than 12 per cent. We additionally set a document by gaining near 10 per cent market share in alternate gasoline section inside simply 5 years of creating debut on this class. Now we’re the second main participant on this area after Bajaj. Total, we’re fairly pleased with the result.Q. What’s the quantity of funding you’re planning to make to proceed your progress trajectory this fiscal?
We’re planning to make over Rs 200 crore of funding within the subsequent three years by 2021. a part of it is going to be associated to transition to BS-VI for all our product powertrain portfolio of three-wheeler section. A really related half shall be invested within the electrical section the place we’re venturing with a three-wheeler mannequin which shall be outfitted with battery swapping perform.
Q. What would be the timeline of your launches for this fiscal?We are going to quickly introduce ourselves in a three-wheeler sub-segment the place we weren’t current thus far. We’re launching a passenger service within the new mid-size physique vary with 230 cc engine within the month of Could. The product shall be out there in 4 variants together with CNG, LPG, diesel and petrol. It’s the similar section the place Bajaj Maxima is positioned at the moment. Following this, we can even launch our electrical three wheeler in August. Combining all of this, we’re planning to introduce 21 three-wheeler merchandise which shall be a mixture of new and upgraded powertrain by March 2020.
Q. Are you planning to make any new modification within the Baramati plant?
Our plant in Baramati, Maharashtra has a complete manufacturing capability of manufacturing greater than 250,000 three-wheelers and over 50,000 four-wheeler autos per 12 months. With this capability, I feel we can handle our manufacturing plans for the following three years and, subsequently, we might not have to speculate extra within the close to future. We final invested round Rs 20 crore in 2018 on this plant for product modification of two-wheeler section.
Nonetheless, wanting on the volumes that we’re planning to realize in turbo-fuel and the scooter market, engine is the realm the place we’re aiming to double our capability of producing. At current, we’re producing 130,000 to 150,000 engines yearly which shall be scaled as much as 250,000 engines per 12 months over the following three years.
Q. Contemplating the growth in product portfolio, what’s the state of your dealership community in India now and the way are you planning to scale it additional?
At the moment, we have now the largest vendor community within the three-wheeler trade in India. We have now deployed greater than 1,000 contact factors and 450 principal dealerships all throughout the nation. Our objective is to have at the least one vendor in every district. Our goal is to introduce round 50 to 100 principal dealerships principally within the sub-urban and rural areas within the due course of 2019 at a tempo of 8-10 new dealerships per thirty days.
Q. Your mini-truck section has proven a comparatively weak efficiency. How are you planning to revive your presence on this area?
We have now Portor 700 and Portor 1000 fashions for mini-truck section and we’re fairly happy with our product vary. What we’re planning subsequent is to have specialised 50-100 dealerships designed particularly for these autos within the subsequent two to 3 years. With this technique, I feel we are able to regain the volumes that we had at the least three to five years in the past.